Muckish Prospect, FEL 1/09, Irish Rockall Basin

Dooish

Discovery

Muckish

Prospect

Muckish East

Prospect

Mackoght

Prospect

Midleton

Prospect

West Midleton

Prospect

N Depth Perspective, looking

SSE, at Base Cretaceous level

ATLANTIC IRELAND

FARM-OUT OPPORTUNITY

SERICA IRELAND Rockall Basin Acreage

Serica

FEL 1/09

Serica

LO 11/1

Serica

FEL 1/06

WHY IRELAND? Commercial Factors

• Highly under-explored, few wells

drilled over the last 30 years

• Strong market for domestic oil

and gas production (Ireland

imports 95% of it’s gas and

100% of it’s oil)

• Good onshore Irish gas pipeline

distribution network

• Access to European oil and gas

markets via UK Interconnector

• Stable politically and

economically

• Corporation tax regime (25%)

regarded as one of the best in

the world

• Yet-to-find: 3 bboe in Porcupine

Basin, and 5 bboe in Rockall

Basin (PAD estimate, 2006)0

50

100

150

200

250

300

350

400

450

500

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

mm

cf/

d

UK Imports

Corrib

Seven heads

Kinsale

Ireland gas consumption

(projected to 2020)

Corrib gas

assumed

from 2014

Wells drilled in offshore

Ireland per year

(source: Wood MacKenzie)

Kinsale Head

Discovery

(1978)

Corrib

Discovery

(1996)

Dooish

Discovery

(2002-3)

Porcupine

Fastnet

Slyne

Hebrides

Møre

Vøring

Halten

Viking

Central

Moray

Firth

Bandon

Corrib

UK

Rockall Irish

Rockall

Ormen-Lange Spanish Point

Connemara

Erris

E.I.S.B.

Tulipan

Tobermory

Laggan

Foinavon-Schiehallion Lochnagar-

Rosebank

Benbecula

Faroe-Shetland

Clare Mayo

Forth

Clair

Burren

Ellida

Carboniferous basin

Triassic basin

Jurassic basin

Cretaceous basin

Flood Basalt /

oceanic crust

North

Celtic South

Celtic

Dooish

Donegal

WHY ATLANTIC IRELAND? Geological Factors

• Shared geology with UK, Faroe &Norwegian Atlantic margins

• Numerous overlapping basins andmultiple phases of rifting

• Six oil and gas fields / discoveries

• More than one proven play

• Numerous pre, syn and post-riftreservoirs & seals

• Several proven source rocks

• Numerous wells with shows

• Many large undrilled structures

• Significant stratigraphic upside

INTRODUCTION Rockall Basin Regional Setting

• Deepwater (500 - 2000m)

• Only 3 exploration wells in Irish sector

Rockall Basin

• Dooish Discovery (12/2-1,1z) proved a

hydrocarbon system

- Seals: Tertiary to Lower Cretaceous

- Reservoirs: Jurassic to Carboniferous

- Source: most likely Jurassic

• Dooish Discovery reserves 265 bcf +

17 mmbbls 45 °API condensate (Shell,

2010)

• Large structural closures mapped on

high-quality 3D seismic data in

adjacent Serica acreage

• Serica’s Muckish Prospect is drill-ready

• Several additional structural prospects

plus stratigraphic upside

Dooish Discovery

Corrib Field

Bandon Discovery

Serica

FEL 1/06

Serica

FEL 1/09

Serica

LO 11/1

Serica Operated Blocks

Existing Licences

IRISH ROCKALL BASIN

Geoseismic Section illustrating Key Plays

Trap • Pre-Cretaceous

conventional tilted faultblocks

• Post-Cretaceous drapeanticlines

• Cretaceous to Tertiarystratigraphic pinch-outs

Source • Probable Upper

Jurassic oil shales(Kimmeridge Clayequivalent)

• Possible MiddleJurassic oil shalesand/or Carboniferouscoals & oil shales

Reservoir • Fractured basement

• Carboniferous fluvio-deltaic sandstones

• Permian continentalsandstones

• Triassic continentalsandstones

• Middle Jurassiccontinental / fluvialsandstones

• Upper Jurassicshallow to deepmarine sandstones

• Cretaceousshelf/slope turbiditefan sandstones

• Palaeocene & Eoceneturbidite fans

Dooish

Discovery

IRISH ROCKALL BASIN 12/2-1,1z Dooish Discovery

• Dooish discovery well 12/2-1,1z (Shell/Enterprise, 2002-3)

• 214m retrograde gas condensate column within Permian &

Middle Jurassic continental (fluvial) sandstones

• Fault and dip-closed structure with crest at 3750mSS

• Not tested, samples & pressures evaluated via MDT

• Log analysis indicates good quality reservoir, average Ø14%

sT

WT

12/2-1,1z

Dooish Erris

Ridge W E

3

4

5

Tertiary

intrusive

Top

Palaeocene

Top Lower

Eocene

Top

Maastrichtian

Top

Turonian

Base

Cretaceous

12/2-1z Dooish

Discovery Well

Perm

ian

Mid

dle

Jura

ssic

Lr.

Cre

t

• Rich 45 °API retrograde gas

condensate

• Geochemical analysis

suggested a mixed

terrestrial/marine source rock

at peak maturity

• However, liquids content (up to

C30) suggests a preference for

a liquids-prone Jurassic source

as opposed to a dry gas-prone

Carboniferous source

• Possibility of an early oil

charge flushed by a later wet

gas charge

IRISH ROCKALL BASIN Dooish Reservoir Fluid

• Located 30 kms north along strikefrom Dooish Discovery

• Large tilted fault block, clearly definedon 3D seismic data

- 31 km2 areal closure and 600m

vertical relief

- Crest at 400mSS

• Water depth ~1500m

• Additional prospects with significantupside

- Muckish East, Mackoght, Midleton &

West Midleton

IRISH ROCKALL BASIN Muckish Prospect Drilling Opportunity

Resource estimates based on Serica in-house interpretation as of March 2013. There is no

certainty that any portion of the resources will be discovered. If discovered, there is no certainty

that it will be commercially viable to produce any portion of the resources

Base Cretaceous Depth (m) BCU closures (drilled & undrilled)

FEL 1/09

LO 11/1

0 10 20km

Mackoght

Prospect

Dooish Gas

Condensate

Discovery

Muckish

Prospect

Muckish East

Prospect

Midleton

Prospect

West Midleton

Prospect

Muckish Reserves P90 P50 P10 COS

Gas bcf 270 1285 3442 20%

Condensate mmbbls 18 85 227

Muckish GIIP P90 P50 P10 COS

417 1973 5287 20%

IRISH ROCKALL BASIN Seismic Tie Line: Dooish to Muckish

12/13-1A 12/2-2 12/2-1,1z 5/22-1

Errigal Dooish W. Dooish Erris Basin Rockall Basin

N S

1s

2s

3s

4s

5s

6s

FEL 1/09

Errigal tested a Palaeocene 4-way

dip closure, probably formed by

intrusion of sills; no reservoirs

Erris Ridge

Lower Cretaceous

much thicker in

Erris Basin than in

Rockall Basin

Thick Carboniferous

underlying Dooish Numerous sills

Top

Maastrichtian

Base

Santonian

Top

Turonian

Base

U. Cret.

Base

Cretaceous

Base

Permian

Top

Palaeocene

Top Lr.

Eocene

Top Mid.

Eocene

Base

Miocene

Muckish

Prospect

Muckish East

Prospect

0 1 2km

Muckish East

Muckish

Mackoght

IRISH ROCKALL BASIN

Muckish: Depth Map on Base Cretaceous

Dooish

Discovery

Muckish

East Muckish

Mackoght

IRISH ROCKALL BASIN

Muckish Prospect SW-NE Seismic Line

SW NE

4

5

sT

WT

Top

Palaeocene

Top Lower

Eocene

Top

Maastrichtian

Base

Santonian

Top

Turonian

Base

Turonian

Base

Cretaceous

Tertiary

intrusive

Tertiary

intrusive

Muckish

Prospect

Muckish East

Prospect

Stratigraphic

potential? Possible gas

cloud?

• Muckish has access topotentially large mature kitchento west and north

- No migration shadows, with

direct migration pathways into

structure

• Rich, wet gas-condensate isthe expected phase, but oil ispossible

• Uncertainties in source rockage and regional heat flowmodels

- Assumes a high geothermal

gradient (at Dooish, 40

°C/km)

- Maturity mapping is based on

thickness of sediment down

to Base Cretaceous

- Older, more deeply buried

source rocks will be more

gas-prone

IRISH ROCKALL BASIN

Muckish Prospect Maturity Modelling

• The Dooish Discovery has established a proven

hydrocarbon system, and is potentially economic

• Further large discoveries in close proximity would

have a significantly improved chance of

commerciality

• The Muckish Prospect is a tilted fault-block

structure analogous to Dooish, with P50

recoverable 1285 bcf wet gas + 85 mmbbls

condensate*

• Muckish East & Mackoght (FEL 1/09) and

Midleton & West Midleton Prospects (LO 11/1)

represent substantial upside

• With significant size and modest risk, the Muckish

Prospect could be the next big discovery in the

Rockall Basin

* Based on Serica’s Best Technical Case

IRISH ROCKALL BASIN

Muckish Prospect Conclusions

W Muckish Prospect

ERM09-5238

E

E Dooish Discovery

ERM09-5198

W